If there is a very strong correlation between two variables, then the coefficient of determination must be
A) much larger than 1, if the correlation is positive.
B) much smaller than -1, if the correlation is negative.
C) equal to zero.
D) closer or equal to 1.

Question

Quizplus · Accepted Answer

The coefficient of determination (r-squared) is a measure of how much variability in the dependent variable can be explained by the independent variable. If there is a very strong correlation between two variables, then a large portion of the variability in the dependent variable can be explained by the independent variable, resulting in a high value for the coefficient of determination. Therefore, the coefficient of determination must be closer or equal to 1.

If There Is a Very Strong Correlation Between Two Variables